Economic geography and emerging market clusters: A co-evolutionary study of local and non-local networks in Bangalore |
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Authors: | Florian A Täube Amit Karna Petra Sonderegger |
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Institution: | 1. European Management School (EMS), Mainz, Germany;2. Solvay Brussels School of Economics and Management, Université libre de Bruxelles (ULB), Brussels, Belgium;3. Indian Institute of Management (IIMA), Ahmedabad, India;4. Dalberg Advisors, Mumbai, India |
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Abstract: | The presence of network ties within location plays a significant role in organization and evolution of clusters. This has proven to be particularly true for clusters specializing in knowledge intensive industries, where the organization of resources – people and technology – has been a primary driver for firm and regional performance. With the help of a longitudinal case study of the Bangalore IT cluster in India, we investigate the effect of local and non-local network ties on its evolution. We argue that networks – both local and non-local – play an important role in the development of cluster. We propose a non-linear relationship between cluster evolution phases and the type of network ties most prominent. Our study also outlines the role that embedding, expansion, and extension of ties plays in transitioning cluster from one phase to the other. The consideration of non-local ties is rather nascent in the cluster literature and promises to enhance the understanding of how clusters develop at both levels – policy as well as firm. |
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Keywords: | Corresponding author at: European Management School (EMS) Rheinstrasse 4N 55116 Mainz Germany Geographical clusters Local networks Non-local networks Cluster evolution Indian IT industry |
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